ØASØK4300 Industrial Organization Course description

Knowledge

Students have specialized insight into:

• How social preferences and social context alter economic outcomes and policies (Fairness, reciprocity, altruism and social norms)
• How heuristic decision making can lead to cognitive biases and choices that are not in one's best interest (mental accounting, availability heuristic, recency bias, conjunction fallacy, etc.).
• How inconsistent preferences can arise and how they challenge policymaking (time-inconsistency, self-control, loss aversion, etc.).
• How the context in which a decision is made can influence preferences and choices (framing, prospect theory, etc.).

Skills

The students can:

• Analyze empirical evidence, often from experiments, for behavior that does not adhere to "economic rationality".
• Model behavioral preferences and decision processes to analyze economic policies.
• Analyze various economic policy options when behavior is not economically rational.
• Deal critically with the pitfalls of behavioral economics in making policy recommendations, such as excessive paternalism or the lack of a clear welfare criterion.

ØASØK4100 Microeconomics.

Lectures with active student participation.

None

• Grunnleggende spillteori
• Statisk oligopolteori (Bertrand og Cournot)
• Horisontal (smak) og vertikal (kvalitet) produktdifferensiering
• Dynamisk oligopolteori (gjentatte spill og uformelt prissamarbeid)
• Bedriftsetablering og strategiske etableringshindre
• Nettverkskonkurranse og to-side markeder
• Incentiver og markedsimplikasjoner av FoU
• Markedsføring (reklame og produktposisjonering)
• Auksjonsteori

There is one final 4-hour exam at the end of the semester.

One dictionary (Native language-English/English-native language or English-English).

Calculator (as specified in regulations for use of calculator).

A-F.

In addition to the instructor, an external examiner will grade the exam.

Gradert skala A - F.

Det benyttes en intern og en ekstern sensor til sensurering av besvarelsene.